EV share in auto components to be 9-11 percent by FY 2027.
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EV share in auto components to be 9-11 percent by FY 2027: Crisil.

The revenue of EV auto component market in India is likely to reach ₹72,500 crores in fiscal 2027.

Crisil released its research report about the EV auto components in India. The report reveals that the revenue of EV component market in India is likely to grow at a rate of around 76% per year and reach ₹72,500 crores in fiscal 2027. In the last fiscal the value was ₹4,300 crores.

Currently, the share of EV components in the overall auto component market is just 1%. By FY 2027, it will reach 9-11%.

Crisil analysed around 220 auto component manufacturers, and the report indicates that the transition to EVs will create both opportunities and challenges for domestic auto component makers.

Manufacturers are not supposed to face any challenge in components that are present in both EVs and ICE vehicles. Almost 75% of the revenue comes from such components, for example, body parts, chassis, suspension, electrical, braking, lighting, and seating.

Companies will face challenges to make the other 25% of parts that are present in an EV but not in an ICE vehicle.

Companies that produce EV components like batteries, drivetrains, electronics, and other EV-specific parts will benefit from this transition. Many new and old OEMs are already investing in developing EV parts.

Pushan Sharma, Director of CRISIL Research, said: Improving cost viability of EVs versus ICE vehicles, and rising consumer demand for environmentally cleaner mobility will drive the transition to EVs. Among the key auto segments, two-wheelers and passenger vehicles (PVs) are seen driving the transition, with their penetration rising to 19% (from ~2.5% currently) and 7% (from less than 1% currently), respectively, over the next five fiscals1. Commercial vehicles, the other large auto segment, will see far lower penetration at ~3% (0.3% currently) because of unfavourable economics.

Also Read: 532 charging stations installed under phase 1 and 2 of FAME India scheme.

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